Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 100 Japanese yen, but it finds that the value of yen is appreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?
A) Buy more Japanese goods.
B) Buy U.S. dollars.
C) Sell U.S. dollars.
D) Encourage U.S. investments abroad.
B
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Using the above figure, which of the lines in the above diagram represents a regressive tax?
A) A B) B C) C D) none of them
Half of all your potential customers would pay $16 for your product but the other half would only pay $10 . You cannot tell them apart. Your marginal costs are $4 . If you set the price at $16, the expected profit is:
a. $3 b. $4 c. $5 d. $6
A foreign aid that flows from one country to another is called a(n):
a. project aid. b. emergency aid. c. development aid. d. bilateral aid. e. multilateral aid.
Net exports will be negative if:
A. exports exceed imports. B. it is an open economy. C. imports exceed exports. D. it is a closed economy.